Crown Castle (CCI) is a Zacks Rank #5 (Strong Sell) that is a real estate investment trust (REIT) that specializes in infrastructure related to telecommunications. Specifically, it owns, operates, and leases cell towers and small cell networks used for wireless communication.

Despite missing earnings expectations in their most recent reports, Crown Castle has experienced a strong rally in 2025, reflecting an overinflated sense of optimism in the stock. Investors could be overlooking the company's challenges, including slowing growth in tower leasing and rising competition in the telecom infrastructure space. With that, analysts are lowering estimates, signaling caution ahead for this stock.

About the Company

Crown Castle became a REIT in 2013 and is currently valued at $46B. The company provides infrastructure for wireless carriers like Verizon, AT&T, and T-Mobile, allowing them to offer mobile and broadband services.

The stock holds Zacks Style Scores of “C” in Growth, but “F” in both Momentum and Value.  

Q4 Earnings

Crown Castle’s fourth-quarter results came in slightly below expectations, with AFFO of $1.80 per share, compared to the consensus estimate of $1.82, and revenues of $1.60 billion, missing the $1.63 billion forecast.

The company announced a major strategic shift, including the sale of its Fiber unit to EQT and Zayo for $8.5 billion. This move marks Crown Castle’s transition to a pure-play U.S. tower company, positioning it to focus more heavily on its core business of wireless infrastructure.

Looking ahead, Crown Castle projects a solid 4.5% organic growth in its tower business for 2025. However, the anticipated challenges from Sprint cancellations and the loss of fiber-related revenue may weigh on the company’s overall performance.

Earnings Estimates Falling

Since the company reported earnings and the fiber segment sale, analysts have been lowering estimates across the board.

For the current quarter, numbers have dropped 40% over the last two months, from $1.72 to $1.02.

Looking at the current year, estimates have declined 40% in that same period, down from $1.67 to $0.99.

For the next year, numbers have fallen 30% over the last two months, now at $4.98, down from $7.19.

Technical Take

The stock hit seven-year lows earlier this year, but is now trading higher by 16% in 2025. The chart is looking much better, with price above the 200-day moving average.

The $105 level is providing some resistance and the stock will likely see even more issues at the $110 level. This $105-100 zone was the trading range before the stock fell below $100.

In Summary

Crown Castle is facing significant challenges despite its recent stock rally. The company's shift to a pure-play U.S. tower business, while strategically focused, comes with risks, including slower growth in tower leasing and the loss of fiber-related revenue.

Analysts have been lowering earnings estimates, and the stock's technical outlook shows potential for further downside if it fails to hold key support levels. With declining earnings projections and rising competition in the telecom infrastructure space, investors should approach Crown Castle with caution, as the stock may struggle to maintain its momentum in the near term.

For those interested in the REIT space, a better option might be Postal Realty Trust (PSTL). The stock is a Zacks Rank #1 (Strong Buy) that is coming off a 30% EPS beat.  

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This article originally published on Zacks Investment Research (zacks.com).

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